Sedco Capital seals $146m US property deal

JEDDAH, May 28, 2015

Sedco Capital, a leading asset manager based in Saudi Arabia, has signed three real estate deals in the US worth $145.5 million as part of the firm’s strategy to invest in high-quality assets and investment opportunities across the globe.

Commenting on the deals, CEO Hasan Al Jabri said: "These deals mark yet another milestone in our long and successful history of transactions in US real estate, which dates back to 1976. Our solid track record and successful ventures there have driven us to select the best players to partner with in the interest of our clients."

"These new deals underscore our powerful partnerships across the US where we aim to not only continue our legacy, but also bring excellent investment opportunities to our clients," he added.

Al Jabri said a hallmark of Sedco Capital's philosophy has been socially responsible investment and the company's adherence to the principles of Shariah makes it very seamless, distinguishing it from others.

"We continue our commitment to our investment philosophy of aligning our interests with our clients which includes the ‘partnership’ concept of investing a minimum of 20 per cent of our group’s money in these properties," he added.

Sedco Capital said it had partnered with Madison Marquette, a leading commercial real estate investment and operating company, to acquire Coral Landings III, a 176,575-sq-ft, neighborhood retail centre at Coral Springs in Florida, US.

The acquisition is the first in a programmatic joint venture that will target high-value retail, office, mixed-use and multi-family assets in compelling urban and infill US markets, where revenue potential can be enhanced with strategic leasing and repositioning, stated the Saudi firm in a statement.

This particular investment program will also focus on Shariah-compliant real estate. Coral Landings III was 85 per cent leased at the time of sale to national tenants that include Home Goods, Best Buy and Jo-Ann Fabric & Craft, it added.

“We are excited about our partnership with Sedco Capital in this joint venture to acquire Coral Landings III, a property that reflects our long-standing commitment to infill investments in dense, affluent markets with significant momentum and upside,” said Amer Hammour, the chairman of Madison Marquette.

“This exciting retail property is ideally suited to our integrated investment and operating platform, and we look forward to building a significant portfolio of high-value assets together with Sedco Capital,” he added.

The second partnership deal has been signed with Kensington Realty Advisory, an investment manager based in Chicago, for acquisition of The Village at the Woodlands Waterway in Texas, a 207-unit independent assisted living and memory care facility, completed in 2012.

Investing in Senior Housing, viewed as a core defensive sector, helps to bring stability to a portfolio especially when 77 million baby boomers in the US will plan to retire over the next two decades, said the Saudi asset manager.

The third joint venture was with Lexington Realty Trust to enter a build-to-suit arrangement to acquire approximately 33 acres of land and construct a 274,000 sq-ft private school for the British International School of Houston.

The joint venture has engaged Simpkins Group, Inc. as developer of the campus. The parent of British Schools of America, is Nord Anglia Education.

Richard J. Rouse, the chief investment officer of Lexington, said the company is pleased with the recent growth of its long-term relationship with Sedco Capital, which began in 1999.

"The British International School of Houston’s build-to-suit transaction allows Lexington to invest in and manage a non-core investment while partnering with an exceptional partner and a quality tenant," noted Rouse.

"We look forward to many future transactions with Sedco Capital, the British Schools of America, LLC and Nord Anglia Education," he added.

Since May 2012, Lexington and Sedco Capital have co-invested in or agreed to co-invest in nine properties with a total acquisition cost of approximately $185 million.

Sedco Capital's chief investment officer Bernard Caralp said the company works with the best in-class managers and partners and engages itself in active asset management through an institutional approach.

"Our long-term and successful partnerships will further improve our capabilities to manage investments effectively with the ultimate goal to serve our clients in their best interests," he added.-TradeArabia News Service